IDEAS home Printed from https://ideas.repec.org/a/ibn/ijefaa/v8y2016i3p225-231.html
   My bibliography  Save this article

Dual Perspective of Inflation toward Market Development

Author

Listed:
  • Muhammad Shaukat Malik
  • Mustabsar Awais
  • Waqar-ul-hassan
  • Faisal Hayat
  • Shahbaz Hussain
  • Aisha Khursheed

Abstract

Stock markets are reflector of trade and economic prosperity across the globe, it comprised of multiple physical and mental components. Economists featured investors and their handsome cash balances among fundamental elements of capital markets. Financial experts along with practitioners developed economic models to engage shareholders by portraiting historical performance and future banefits of securities. Present study attempted to investigate the potential of inflation rate for casuing market returns under the concept of Ross (1976) pricing theory. CPI is used as proxy of inflation and KSE returns for measuring securities behaviours. Low inflationary (2000-2004) and High inflationary (2010-2014) durations as sample periods are privileged to empirically examine twofold intensity of CPI toward index of Pakistani markets. Linear regression analysis declared inflation rate as poor model for estimation of capital market returns, furthermore CPI resulted significant as well as insignificant casual relationship with positive and negative intensity toward KSE returns.

Suggested Citation

  • Muhammad Shaukat Malik & Mustabsar Awais & Waqar-ul-hassan & Faisal Hayat & Shahbaz Hussain & Aisha Khursheed, 2016. "Dual Perspective of Inflation toward Market Development," International Journal of Economics and Finance, Canadian Center of Science and Education, vol. 8(3), pages 225-231, March.
    • Handle: RePEc:ibn:ijefaa:v:8:y:2016:i:3:p:225-231
    as

    Download full text from publisher

    File URL: http://ccsenet.org/journal/index.php/ijef/article/view/56117/30796
    Download Restriction: no
    File URL: http://ccsenet.org/journal/index.php/ijef/article/view/56117
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Farid Ullah & Ijaz Hussain & Abdur Rauf, 2014. "Impacts of Macroeconomy on Stock Market: Evidence from Pakistan," International Journal of Management and Sustainability, Conscientia Beam, vol. 3(3), pages 140-146.
    2. Isma Zaighum, 2014. "Impact of Macroeconomic Factors on Non-financial firms Stock Returns: Evidence from Sectorial Study of KSE-100 Index," Journal of Management Sciences, Geist Science, Iqra University, Faculty of Business Administration, vol. 1(1), pages 35-48, March.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Waqar-ul-Hassan & Zeeshan Hasnain & Shahbaz Hussain, 2017. "Evaluating the Effectiveness of Asset Pricing Model before, during and after Financial Crisis 2008: Evidence from Karachi Stock Exchange," Business and Economic Research, Macrothink Institute, vol. 7(1), pages 177-188, June.
    2. Stahl, B.C. & Andreou, A. & Brey, P. & Hatzakis, T. & Kirichenko, A. & Macnish, K. & Laulhé Shaelou, S. & Patel, A. & Ryan, M. & Wright, D., 2021. "Artificial intelligence for human flourishing – Beyond principles for machine learning," Journal of Business Research, Elsevier, vol. 124(C), pages 374-388.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Imtiaz Arif & Tahir Suleman, 2017. "Terrorism and Stock Market Linkages: An Empirical Study from a Front-line State," Global Business Review, International Management Institute, vol. 18(2), pages 365-378, April.
    2. Manamba EPAPHRA & Evidence SALEMA, 2018. "The impact of macroeconomic variables on stock prices in Tanzania," Journal of Economics Library, KSP Journals, vol. 5(1), pages 12-41, March.
    3. Waqar-ul-Hassan & Zeeshan Hasnain & Shahbaz Hussain, 2017. "Evaluating the Effectiveness of Asset Pricing Model before, during and after Financial Crisis 2008: Evidence from Karachi Stock Exchange," Business and Economic Research, Macrothink Institute, vol. 7(1), pages 177-188, June.
    4. Marina Afzal, Muhammad Danish Habib, 2018. "Corporate Governance and Earnings Management: A Model and Empirical Investigation from Karachi Stock Exchange," Journal of Finance and Economics Research, Geist Science, Iqra University, Faculty of Business Administration, vol. 3(2), pages 51-67, October.

    More about this item

    Keywords

    Healthy investors; capital markets; financial models; securities returns and CPI;
    All these keywords.

    JEL classification:

    • R00 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General - - - General
    • Z0 - Other Special Topics - - General

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ibn:ijefaa:v:8:y:2016:i:3:p:225-231. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Canadian Center of Science and Education (email available below). General contact details of provider: https://edirc.repec.org/data/cepflch.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.